2015 Annual Report - National Federation of Community

ʹͲͳͷ—ƒŽ‡’‘”–
NationalFederationof
CommunityDevelopmentCreditUnions
CreditUnionsUnitedtoServetheUnderserved
ƒ›ʹͲͳ͸
CEO Report
2015 was a momentous year for the Federation, with significant gains for
community development credit unions in the regulatory, financial and
operational arenas. After intensive advocacy and engagement with the
Federation, the NCUA announced changes to the National Supervisory Policy
Manual in April that provided objective measures by which credit unions can be
approved for pre-payment of principal for secondary capital. This shift enabled
the Federation to create our amortizing secondary capital loan product,
Secondary Capital II. With a $10 million investment from Bank of America, this
new product was announced at our Annual Conference in September 2015; to
date, more than $6 million of secondary capital has already been deployed to
high-impact credit unions to fuel their growth. The Federation piloted the
purchase of mortgage loans at origination and developed a more clear set of
standards for credit unions seeking to offer a broader range of affordable
homeownership options to their members. Overall the Federation’s lending portfolio grew by 4% from 2014 to
2015, with a growth of 18% in secondary capital. The CDCU Mortgage Center grew by $1.2 million, with the
purchase of 13 affordable home mortgage loans for a total of $1.5 million.
After an exhaustive feasibility study supported by Citi Community Development, the Federation selected a
mission-driven software provider, EPL Inc., to create CU Impact. CU Impact is a robust core data processing
platform, the first of its kind tailored to the unique needs of credit unions serving low-income consumers and
communities.
Finally, we continued to grow our supportive services to CDCUs, with a particular focus on supporting small,
low-income and minority credit unions. In 2015, we worked with over 92 credit unions to deliver technical
assistance, consulting services and back-office accounting and internal controls support. The Federation
reached more than 350 credit unions through our successful webinar training series on building a solid lending
program with TCT Risk Solutions and on internal controls and supervisory oversight led by our Senior Technical
Assistance Specialist.
We have focused our program work to help credit unions implement innovative products and services (such as
Borrow and Save); to launch successful outcomes-driven financial counseling and coaching programs
(Pathways to Financial Empowerment) and to provide the tools to reach unbanked immigrant communities
(Juntos Avanzamos).
I hope you enjoy reading about these exciting developments and continue to work with us on growing each of
these areas in 2016!
Cathie Mahon
President/CEO
OUR MISSION
The National Federation of Community Development
Credit Unions helps low- and moderate-income people and communities
achieve financial independence through credit unions.
Contents
Financial Overview….............................................................................................................................................. 2
Operating Results .................................................................................................................................................. 3
Community Development Investment Program: Investing in Community Driven Credit Unions and Low‐
Income Communities
−
Secondary Capital .................................................................................................................................... 4
−
Non‐Member Deposits ............................................................................................................................ 5
−
CDCU Mortgage Center ........................................................................................................................... 5
Innovating to Meet the Needs of Low‐Wealth Consumers
−
Borrow and Save, a Better Small Dollar Loan ......................................................................................... 6
−
Financial Immigrant Inclusion ................................................................................................................. 7
−
Juntos Avanzamos ................................................................................................................................... 7
−
Financial Capability Partnership Initiative .............................................................................................. 8
−
Pathways to Financial Empowerment .................................................................................................... 9
Supporting Minority and Faith‐Based Credit Unions.......................................................................................... 10
Technology Solutions for the Delivery of Responsible Financial Products at Scale
−
CU Impact, a New Shared Banking Platform for Community Development Credit Unions ................ 11
−
Small Business Lending Made Easier with Spark .................................................................................. 11
Advocating on Behalf of Credit Unions with a Mission of Financial Inclusion ................................................... 12
CU Breakthrough ................................................................................................................................................. 13
Research ............................................................................................................................................................... 14
Annual Conference .............................................................................................................................................. 15
Investors, Funders and Partners… ....................................................................................................................... 16
Board of Directors................................................................................................................................................ 17
www.cdcu.coop | 1
Financial Overview
The National Federation of Community Development Credit Unions (Federation) is a non-profit membership
organization and certified community development financial intermediary representing credit unions focused
on increasing inclusive and equitable financial services to low- and moderate-income people and communities.
We report our statement of activities as a non-profit corporation, reflecting revenues and expenses including
program, investment, consulting and administrative.
As a CDFI intermediary and impact investor, most of the Federation’s assets are invested in community
development credit unions (CDCUs) that share our mission of helping consumers achieve financial
independence. As of December 31, 2015 the Federation had $25.97 million in assets. Our investments are well
deployed with $22.27 million invested in CDCUs, a deployment ratio of 72%. All investments, excluding
nominee deposits, are reported on our balance sheet.
The Federation is well capitalized with $9.43 million in net assets, a net asset ratio of 36%. For 2015, the
Federation reported $144,059 in net income, an increase of $93,067 from the prior year. Net interest income
generated by the Community Development Investment Program and CDCU Mortgage Center was $460,000,
excluding provision expenses of $86,000. Revenue generated from investments is used to off-set the costs of
the Federation’s other non-profit programmatic activities.
Year-End Summary
As of December 31, 2015
12/31/15
12/31/14
Change
% Change
Total Assets
$25,968,912
$25,681,028
$287,884
1%
Total Liabilities
$16,534,621
$16,390,796
$143,825
1%
Total Net Assets
$9,434,291
$9,290,232
$144,059
2%
Net Asset Ratio
36%
36%
0%
0%
Total Net Income
$144,059
$50,992
$93,067
183%
Community Development Investments
2013-2015
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2013
Non-Member Deposits
2014
Nominee Deposits
Mortgages
2015
Secondary Capital Loans
www.cdcu.coop | 2
Operating Results
Revenues
In 2015, the Federation reported $4.10 million in revenue, an increase of 16% since the prior year. Total grants
and contracts generated revenue totaling $2.4 million, with another $542,038 generated from membership
dues and events.
The Federation’s investment programs generated $749,306 in interest income. The Federation also received
$662,315 in grant revenue specifically for sub-grants to credits unions and other non-profit organizations.
The Federation has an allowance for loan loss of $543,696, which is based on historical loss rates,
environmental variables and special reserves for individually impaired loans.
Operating Expenses & Program Investments
Operating expenses cover all the direct costs of the Federation’s programs and initiatives, and management
of investments in our CDCUs.
The Federation reported total expenses of $3.9 million, an increase of 12% compared to the prior year. The
increase is attributed primarily to increase in staffing and related expenses, to operations of the Federation
such as scaling our CDCU Mortgage Center, our affordable home ownership program and implementing our
programmatic initiatives, as well as the impact of pass-through grants.
Statement of Position
The Federation’s total assets were $25.97 million as of December 31, 2015 of which $9.69 million were held as
cash and cash equivalents. Of these assets, the Federation held $16.26 million in on-balance sheet investments
in CDCUs, with an additional $6.75 million off-balance sheet assets (nominee deposits).
Community Development Investment Portfolio
Outstanding and Committed Investments
as of December 31, 2015
Mortgages
28%
Risk-Shared
Deposits
1%
Insured Deposits
39%
Secondary Capital
Loans
32%
Insured Deposits
Secondary Capital Loans
Mortgages
Risk-Shared Deposits
www.cdcu.coop | 3
Community Development Investment Program:
Investing in CDCUs and Low-Income Communities
The Federation provides capital resources to CDCUs through its Community Development Investment (CDI)
Program. With funding from its diverse investor partners, including banks, foundations, religious organizations
and socially responsible investors, the CDI Program has invested more than $120 million in CDCUs since its
inception in 1982.
Secondary Capital
Secondary Capital is a subordinated loan that
can be counted towards a credit union’s net
worth and can be leveraged by growing CDCUs
to expand safe and affordable lending in lowincome communities. The Federation holds a
total of $8.5 million in outstanding and
committed Secondary Capital loans. In 2015
the Federation introduced Secondary Capital II
loans which feature expected repayments of
amortized principal. Loans of up to $1 million
are available for CDCUs expanding innovative
services in underserved communities.
Suncoast Credit Union Uses Federation Secondary Capital to Expand Affordable Housing
Affordable housing and first time homebuyer loans can help prevent homelessness and build wealth in lowincome communities. Suncoast promotes affordable home ownership through our First Time Homebuyer
mortgage with expanded underwriting criteria, including allowing a lower credit score, higher loan-to-value
ratios, and the use of alternative credit history. We save members money by not requiring private insurance on
this mortgage product. Suncoast is experiencing increasing demand for First Time Homebuyer loans. Florida has
the third highest homeless population in the US and home prices are on the rise. Over 67% of Suncoast’s current
members live in the low-income designated areas that qualified Suncoast for low-income designation. Federation
secondary capital will allow Suncoast to expand their First Time Homebuyer mortgage and provide even more
members with an affordable housing option that builds and strengthens sustainable communities.
-
Julie Renderos, EVP and CFO
Suncoast Credit Union
www.cdcu.coop | 4
Non-Member Deposits
As of December 31, 2015, the Federation held and managed $10.1 million in insured deposits. Non-member
and nominee deposits are the largest component of the CDI Program’s investment portfolio, however, their
percentage share has decreased due to recent mortgage purchases and the introduction of new secondary
capital products. Demand for deposits continues to increase as the number and volume of community
development lending by CDCUs increases. The CDI Program currently holds more than $5 million in requests
for additional deposits to support community lending.
CDCU Mortgage Center
The CDCU Mortgage Center provides mortgage related services to CDCUs serving low-and moderate-income
members and communities. Launched in 2005, the Mortgage Center was established to help credit unions
expand affordable mortgage finance options for their members. The CDCU Mortgage Center is a Secondary
Market Program that purchases conforming and non-conforming affordable first lien mortgage loans from
our member credit unions. The Mortgage Center helps CDCUs recycle capital in their communities, freeing
up funds for additional lending. The Mortgage Center has to date purchased over 120 mortgages totaling
close to $15 million.
In 2016, the Mortgage Center will launch a new initiative to dramatically increase the volume of loans
purchased, providing an alternative to the predatory practices targeted at the minority, immigrant and low‐
income communities across the country, enabling our member credit unions to provide quality residential
mortgage services to the communities they serve.
Tuscaloosa Credit Union Creates Four New Happy Homeowners
Through a joint effort of Tuscaloosa Credit Union, The CDCU Mortgage Center, City of Tuscaloosa and the
Tuscaloosa Housing Authority we were able to place four deserving families in homes of their own. The
city of Tuscaloosa and the Tuscaloosa Housing Authority provided second and third forgivable mortgages
to help avoid the need for mortgage insurance and a down payment from the borrowers. The borrowers
only needed to save up a $1,000 earnest money deposit. We then sold the low-interest, first lien
mortgages to The Mortgage Center where they are held in portfolio. Through pre-purchase and ongoing
post-purchase financial counseling we are confident that these loans will continue to perform. The
second and third liens are zero interest, zero
payment and will be forgiven provided the
homeowners stay in their homes for at least
5 years. This creates not only pride in
homeownership, but a nice equity nest egg
for these great families. At TCU our mission is
to support the lives of our members through
consistent, excellent service; highly
competitive products, and the discipline to do
the right thing, the right way. It is nice to
know that the Mortgage Center’s
commitment to TCU is just as strong.
-
Mike Ivey, Chief Mortgage Officer
Tuscaloosa Credit Union
www.cdcu.coop | 5
Innovating to Meet the Needs of Low-Wealth
Consumers
Borrow and Save®, a Better Small Dollar Loan
Borrow and Save® is a small dollar loan with a required savings component for
credit unions serving low-wealth consumers. Consumers can borrow between $300
and $2,000, with 5 to 50 percent of the loan balance placed in restricted savings for
the term of the loan. When the loan is repaid borrowers have savings – and
improved credit.
In 2014, Borrow and Save® was chosen to participate in the Filene Accessible
Financial Service Incubator. Twelve credit unions participated in the 18 month
program.
Fast facts from the Borrow and Save® pilot:
• 3,100 Borrow and Save loans closed
• $2.9 MM loaned to borrowers and $900,000 saved by borrowers
• Average loan was $944, with average savings of $290
Read the Report
In a survey of borrowers, 94 percent said Borrow and Save® helped with an emergency and 89
percent said they would use the loan again if the need arose.
Borrow and Save® Becomes One of Freedom First’s Most Successful Impact Banking Products
Freedom First is sometimes unable to fulfill the requests of individuals who come to our branches
requesting loans for their immediate needs. When credit challenges or income limitations present
barriers to traditional loan products, Borrow and Save provides an alternative starting point, enabling the
member to take steps toward financial self-sufficiency. Borrow and Save reduces the loan amount and
introduces the concept of saving for future needs; the goal is to provide a structure and schedule that
encourages future saving habits. Borrow and Save is successful when the member continues to channel
his loan payment amount directly into savings after the Borrow and Save repayment period has ended.
Borrow and Save has become one of Freedom
First’s most successful Impact Banking
products. We have found that borrowers who
are not initially in a position to take advantage
of larger Impact Banking loan programs–such
as Responsible Rides or Affordable Housing–
are able to build their savings through Borrow
and Save; they can then contribute to the
down payment required for a vehicle or home
purchase.
– Dave Prosser, SVP Community
Development, Freedom First Credit Union
www.cdcu.coop | 6
Financial Inclusion: Linking Immigrants to Safe Credit
Union Products
In 2015, the Federation organized Immigrant Financial Inclusion Roundtables as part of our national campaign
to link unbanked and underbanked immigrants to the safe and affordable products and services of CDCUs.
Roundtables in Los Angeles, Dallas, New York, Seattle and Tampa in the first half of 2015 brought together credit
unions interested in serving immigrants with local and national
immigration agencies and non-profit service organizations. The
roundtables were made possible by a generous grant from the Annie E.
Casey Foundation.
In partnership with Grantmakers Concerned with Immigrants and
Refugees (GCIR), the Federation linked credit unions in Washington
State and Iowa with local agencies serving immigrants through the
Northwest Area Immigrant Asset Building Initiative. The initiative was
funded by the Northwest Area Foundation and culminated in a toolkit
for credit unions published in December 2015.
Read the Report
Juntos Avanzamos
Juntos Avanzamos – Together We Advance – is a designation for credit unions committed to serving and
empowering Hispanic consumers. Originally developed by the Cornerstone Credit Union League for immigrant
outreach in Texas, the Federation is leading the national expansion of Juntos Avanzamos in partnership with
Coopera, NLCUP and a growing number of state leagues and associations. The number of Juntos Avanzamos
credit unions is expanding rapidly; through February 2016 the network includes 47 credit unions in 11 states
and the District of Columbia.
Rio Grande CU Makes Over $150,000 in ITIN Loans in 2015
Having been turned away by other financial institutions, one new member had been without lending
services all of his adult life. With his ITIN in hand, Rio Grande Credit Union granted him a $500 signature
loan to help establish credit. The member faithfully paid the loan in full within six months. Because of his
successful payment history, our member was recently approved by our credit union for the financing on
the purchase of a new vehicle.
Now, our member maintains a full relationship
with Rio Grande Credit Union, including direct
deposit, allowing for a convenient way to make
automatic loan payments. This member is
planning for another financial milestone and
has begun saving to purchase a home in the
near future.
-
Chris Fitzgerald, CEO
Rio Grande Credit Union
www.cdcu.coop | 7
Financial Capability Partnership Initiative
The Financial Capability Partnership Initiative is a three‐year initiative, launched in 2013 by the Federation and
the Center for Financial Services Innovation (CFSI) to advance financial capability in underserved communities
through the integration of CDCU products into social and human service delivery. Through the Initiative,
partnerships in three cities are developing sustainable models for financial capability integration: Self‐Help
Federal Credit Union is partnering with MyPath and Year Up in San Francisco, South Side Community Federal
Credit Union is partnering with The Community Builders in Chicago, and St. Louis Community Credit Union and
Prosperity Connection are partnering with Kingdom House in St. Louis.
From the partners’ first year of implementation in 2014 to the second year in 2015, the number of low‐
income consumers reached increased by 80% to 763, and 271 individuals opened savings accounts.
Savings and credit impacts also more than doubled in 2015 as clients have adopted credit union products
and started making progress in their own financial goals.
In September 2015, we published Partnerships for Financial Capability:
Diagnostic Frameworks for Financial Institutions and Partners, documenting
best practice observed in the first two years of the Initiative.
In 2016, the Federation and CFSI will focus on broadening knowledge
sharing by providing online and in‐person training to at least 300 human
services and financial services practitioners.
Financial Capability Partnership Initiative is made possible
through the generous support of The Kresge Foundation.
Read the Report
www.cdcu.coop | 8
Pathways to Financial Empowerment
Financial capability shifts emphasis from financial information
to the actions a consumer takes to improve her financial well‐
being. Pathways to Financial Empowerment is a financial
counseling model supported by first‐of‐ its‐kind technology to
track impact and is currently being tested by credit unions
in Louisiana, New York, Ohio, Texas and Virginia.
Results to date from more than 520 coaching sessions for
more than 370 clients indicate that this system is helping
credit union members understand their finances and take
steps to improve their financial lives. The Federation and
pilot partner Neighborhood Trust Financial Partners are so
encouraged by early results that plans are underway to
expand the pilot to a new pool of beta testers immediately.
Counselors are reaching a very low‐income and credit
challenged demographic. The majority of clients have gross
incomes of less than $30,000 and have credit scores of under 620. Nearly half of the clients to date are Latino,
28 percent are African‐American, and 22 percent are white. Nearly two‐thirds of clients are women and 88
percent are employed.
The Pathways model enables credit
union staff to deliver high‐quality,
consistent coaching engagements
that don’t stop when clients leave the
credit union. Text messages send
clients reminders to complete actions
agreed upon in counseling sessions
and Client Stability Snapshots
illustrate the client’s on‐going
financial health.
Another unique feature of the
Pathways model is its Outcome
Tracking Platform. Dashboards
aggregate counseling and client
performance results, producing
reports that credit unions can share
with credit union and community
leadership as well as funders.
Pathways to Financial Empowerment
is made possible by a generous grant
from The MetLife Foundation.
www.cdcu.coop | 9
Supporting Minority and Faith-based Credit
Unions
In recognition of the unique needs and challenges of credit unions with assets of less than $20 million, the
Federation’s Board of Directors created a Small Credit Union Committee, chaired by Armando Martinez, CEO
of Kingsville Community FCU, to support credit unions of limited capacity that serve members and
communities where access to insured lenders and affordable financial services is practically nonexistent.
Free Technical Assistance
The Federation launched a free Technical Assistance Hotline in 2015 for credit unions
with assets of less than $20 million. Our TA Specialist can help small credit unions
prepare for an upcoming exam or address issues identified in a prior exam. For larger
credit unions, TA in the areas of reconciliation/accounting, compliance/audit and
annual supervisory audit is available through the Federation’s CU Breakthrough
consulting group for a fee.
Mentorship
With the African-American Credit Union Coalition (AACUC) and the Network of Latino Credit Unions and
Professionals (NLCUP), the Federation pairs mentors with credit unions of more limited capacity. Trained,
experienced mentors are available in the areas of strategic planning, lending, fiscal management, board
compliance, and operations.
Training
Small credit union forums that took place in the greater New York City area in 2015 will serve as the basis for
expanded training in 2016. Forums will include proven strategies for growth, including connecting with
community partners, peer-to-peer learning and training in compliance and lending.
Cooperative Finance Leaders for America (CFLA)
Credit union membership and
leadership is aging across all
asset sizes. For small credit
unions recruiting younger
members and staff can be even
more of a challenge. CFLA
identifies junior and mid-career
professionals interested in
cooperative finance and
community development. The
CFLA fellows typically work in
small, minority and faith-based
credit unions. Pictured at right is
the class of 2015.
CFLA is supported by a generous
grant from Citi Community
Development.
www.cdcu.coop | 10
Technology Solutions for the Large Scale
Delivery of Responsible Financial Products
CU Impact, a Shared Banking Platform for CDCUs
CU Impact is a specialized shared banking system designed to scale up the
delivery of innovative products and services in underserved communities.
The Federation is working with Birmingham, AL based EPL, Inc. on the
development of the only core platform created specifically for CDCUs and
CDFI credit unions. Scheduled to launch in fall 2016, CU Impact will:
• Facilitate the development and deployment of new products
• Measure and evaluate community development impact
• Increase the efficiency and lower the technology cost to
mission- driven credit unions
• Connect and play well with other open solution systems
Read more about how CU Impact will help credit unions grow in
products, services and impact in the September 2015 Technology Brief
pictured at left.
Read the Report
CU Impact research and design has been made possible by a
generous grant from Citi Community Development.
Small Business Lending Made Easier with Spark
The Federation has partnered with the Community Reinvestment Fund, USA on Spark, a cloud-based
business lending platform beneficial to credit unions originating small SBA loans between $25,000
and $5,000,000. Spark software facilitates the origination process from application to closing for
both the lender and the borrower.
Spark harnesses expertise and
technology to make it easier for
CDCUs to reach new members,
establish greater efficiencies and
increase investment in
underserved communities.
www.cdcu.coop | 11
Advocating on Behalf of Credit Unions with a
Mission of Financial Inclusion
The Federation tracks legislative, regulatory and policy issues that affect credit unions and develops and
advocates policy positions. These positions promote consumer protection in the financial services marketplace
while enabling a regulatory framework that lets CDCUs do what they do best: build financial independence
among low-income people and communities.
The Federation has been working with the CDFI Fund to increase the number of
Technical and Financial Assistance awards and the dollars allocated to credit
unions. Read the Federation’s comment letters to the Fund at
www.cdcu.coop/advocacy/cdfi-fund/. CDFI grants are a unique source of capital
that can fuel CDCU growth in membership, deposits and loans.
The CDFI Fund is listening and acting. In January 2016, the US Department of the
Treasury announced a partnership with NCUA to double the number of CDFI
credit unions by the end of 2016.
“By… increasing the number of certified CDFI credit unions,
we’re laying the foundation for greater access to affordable
financial services and more investment in local communities.
This will help credit unions better serve members and
communities that have been difficult to reach, and that will
help more people build wealth and more secure financial
futures for themselves and their families.”
Debbie Matz, NCUA Chair
Federation research conducted in 2014 established that
CDFI certification was within reach for hundreds of credit
unions and that CDFI credit unions:
• Thrive in tough markets
• Maximize the leverage of external resources
• Are leaders in technology and innovative member
services
• Represent a viable business model for community
development finance
At the Federation’s CDFI Credit Union Roundtable at the 2015 Governmental Affairs Conference (GAC), the
Federation reported that 394 credit unions could be immediately eligible for CDFI certification.
www.cdcu.coop | 12
CU Breakthrough
CU Breakthrough is the Federation’s fee-based consulting service that helps credit
union of all types and sizes grow by helping them identify and implement
sustainable solutions for their low wealth members. Our consultants have expertise
in serving low-income markets and comprise the largest consulting group available
to the credit union industry. Engagements include CDFI grant applications,
Emerging Market Reviews, and Strategic Planning.
Emerging Market Reviews, EMRs, are a global review of a credit union’s products, services, technology,
operations and outreach seen through the lens of its target market. The analysis of the credit union’s
existing program, combined with opportunities presented by individual markets and best practices
gleaned from the Federation’s national network, results in an action plan for growing the bottom line and
membership through meeting the
needs of low-income consumers.
Federation consultants Blake Myers
and Tammie Hoy are pictured at right
meeting with Government Printing
Office Credit Union employees in
spring 2015. GPO’s EMR laid the
foundation for a CDFI financial
assistance grant application filed in
the following CDFI funding round.
California Certification Campaign
In 2015, the Federation’s CU Breakthrough group joined forces with CUNA
Mutual Group and the California and Nevada Credit Union Leagues to increase
the number of CDFI certified credit unions in California. From the CDFI’s
inception in 1994 over $168 million has been awarded to California CDFIs, but
California credit unions had received less than 10% of the dollars awarded.
Roundtables held in northern and southern California in December 2015 kicked
off the certification efforts. Red areas of the map represent CDFI Investment
Areas.
Community Development Profile
New to the Federation in 2015 was the distribution of community development profiles for members. This
profile, unique in the credit union industry, provides credit union CEOs with detailed, modeled
data comparing each credit union to peer, low-income designated and community
development credit unions by asset category.
Wow! This is fantastic and will be very, very helpful in completing grant
applications and submissions. I can’t tell you how perfect your timing is in
helping us prepare two RFPs we have in the pipelines right now. Again, thanks
a mil!
- First Choice Credit Union
www.cdcu.coop | 13
Research
From Distrust to Inclusion: Insights into the Financial Lives
of Very Low-Income Consumers
With generous support of the Ford Foundation, the Aspen Institute joined forces with the Federation to study
the financial service needs and behaviors of consumers with incomes of less than $20,000. This qualitative
study is based on in-depth interviews at Community Check Cashing
in Oakland, CA; Community Trust Prospera in San Jose, CA; St. Louis
Community Credit Union in St. Louis, MO; and Guadalupe Credit
Union in Santa Fe, NM.
Findings include:
• Instability and volatility is the norm.
• Very low-income consumers have different needs.
• Trust and relationships remain key to moving toward greater financial stability.
• Mobile banking technologies have not earned the trust of very low-income consumers.
• Very low-income consumers depend on cash.
• Traditional budgets are not helpful in managing household
finances and flows.
• Context matters.
Efforts to reach unbanked and underbanked
consumers has focused almost exclusively on the
development of new products and technologies.
This research indicates that products and
technologies cannot deliver what very low-income
people value most – trusted relationships.
Read the Report
The study gives rise to five challenging questions for investors and practitioners:
1. Why do financial inclusion efforts promote “getting banked” as the first step, when many consumers
consider opening accounts as something to do when they have enough steady income to support the
cost?
2. Why promote static budget tools when people indicate their finances may be changing day-to-day?
3. How can we build services, products and operations that appeal to very low-income consumers?
4. How can we scale relationships and trust?
5. How can we pay for services that improve the condition of very low-income consumers and their
communities?
Also included in the report are promising practices from a scan of the Federation’s Emerging Market Reviews.
Included are descriptions of savings and consumer loan products, Better Checking accounts and online banking
and mobile applications.
www.cdcu.coop | 14
Annual Conference
At the Federation’s 2015 Annual Conference, jointly held
with CUNA’s Community Credit Union Conference,
keynote speaker Martin Eakes, CEO of Self-Help and the
Center for Responsible Lending, spoke on the future of
credit unions with a mission to serve low-income
communities. Read an excerpt from the conference blog
post below.
It would be impossible to encapsulate Martin Eakes’s opening plenary… the audience
literally laughed and cried. Martin gave three practical recommendations to small
credit unions to survive and thrive: grow our assets per members; increase your
mortgage lending to moderate-income, non-conforming homebuyers; and develop a
mobile banking platform, an essential element of the future of financial services. But
the more important message that Martin delivered is that “it is our duty and our
privilege to fight for freedom and economic justice”.
Announced at the 2015 Conference: Bank of America invests $10
million in the Federation’s Community Development Investment
Program to launch new Secondary Capital loans. Freedom First
Credit Union, IH Mississippi Valley Credit Union and Suncoast
Credit Union will each receive $1 million. “We’re proud to have
partnered with the Federation to invest in community
development credit unions… and we look forward to continuing
to support these efforts,” said Dan Letendre, CDFI Managing
Director, Bank of America, pictured here with Cathie Mahon,
Federation CEO.
2016 Annual Conference
The Federation and CUNA are joining forces again this year for the largest
gathering of credit unions with a mission of financial inclusion. Join us
November 14-17, 2016 in Dallas, TX.
www.cdcu.coop | 15
Investors, Funders and Partners
Investors
Funders
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Adrian Dominican Sisters
Amalgamated Bank
Annie E. Casey Foundation
Bank Hapoalim
Bank of America
Catholic Health Initiatives
Deutsche Bank Americas Foundation
F. B. Heron Foundation
The Ford Foundation
The Kresge Foundation
Meyer Memorial Trust
Mizuho Bank
New Economy Project
Riverside Church
Robert S. Bowditch Jr. Trust
Sisters of Notre Dame
TD Bank USA, N.A.
Threshold Foundation
Trinity Health Corporation
Unitarian Universalist Association
Woodlands Investment Management
Account
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Annie E. Casey Foundation
Bank of America
Capital One
Community Development Financial Institutions
(CDFI) Fund
Citibank
CUNA, Inc.
CUNA Mutual Group
Empire State Development Corp.
EuroNext
Everence
Filene Research Institute
The Ford Foundation
Grantmakers Concerned with Immigrants and
Refugees
The Kresge Foundation
The MetLife Foundation
National Cooperative Bank
National Disability Institute
Navy Federal Credit Union
US Department of Housing and Urban
Development
VISA
Partners
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
African American Credit Union Coalition
Balance
California and Nevada Credit Union League
Catholic Charities USA
CDFI Coalition
Center for Financial Service Innovation
Cities for Citizenship
The Community Builders
Community Reinvestment Fund, USA (CRF)
Coopera
Cornerstone Credit Union League
Credit Builders Alliance
Credit Union Association of New Mexico
The Embassy of Mexico
EPL, Inc.
Federation of Protestant Welfare Agencies
(FPWA)
Institute for Mexicans Abroad
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Kingdom House
Mountain West Credit Union Association
MyPath
National Council of LaRaza
National Council on Aging
National Credit Union Foundation
Neighborhood Trust Financial Partners
NeighborWorks America
Network of Latino Credit Unions and
Professionals (NLCUP)
New York State CDFI Coalition
Northwest Credit Union Association
Opportunity Finance Network (OFN)
TCT Risk Solutions
Year Up
www.cdcu.coop | 16
BoardofDirectors
Executive Committee Chairman: Deyanira Del Río, Board Chair, Lower East Side Peoples’ FCU, New York, NY – Region 1 Vice Chairman: Mignhon Tourné, CEO, ASI FCU, Harahan, LA – Region 2 Treasurer: Jack Lawson, President/CEO, Missoula FCU, Missoula, MT – Region 4 Corresponding & Recording Secretary: Robin Romano, CEO, MariSol FCU, Phoenix, AZ – Region 4 Directors Michael A. Chan, Board President, Northeast Community FCU, San Francisco, CA – At Large Edgar Cosner, CEO, The United FCU, Morgantown, WV – Region 2 Carla Decker, CEO, District Government Employee FCU, Washington, DC – Region 1 Cheryl Fatnassi, CEO, Opportunities CU, Winooski, VT – Region 1 Paul Grinde, Community Development Officer, CoVantage CU, Antigo, WI – Region 3 Armando Martinez, CEO, Kingsville Community FCU, Kingsville, TX – Region 3 Sheilah Montgomery, CEO, Credit Union of Atlanta, Atlanta, GA – At Large Permelia “Pam” Murphy, CEO, Citizens Choice FCU, Natchez, MS – Region 2 Paul Phillips, CEO, Freedom First FCU, Salem, VA – At Large Richard Romero, CEO, Seattle Metropolitan CU, Seattle, WA – Region 4 Paul Woodruff, Vice President, Community Development, St. Louis Community CU, St. Louis, MO – Region 3 www.cdcu.coop | 17 National Federation of Community Development Credit Unions
39 Broadway, Suite 2140 | New York, NY 10006 | www.cdcu.coop | T 212.8091850 | F 212.809.3274